- July 15, 2020
- Posted by: Tradingshot Articles
- Category: Cryptocurrency
I just want to set all the confusion straight regarding Bitcoin’s ranged price action since May. After each BTC Halving, the price always consolidated for several weeks before a bullish break-out from the range.
To put this into perspective, following Halving 1 (November 28, 2012), BTC consolidated for 6 weeks within a roughly 12% range. After Halving 2 (July 9, 2016), it consolidated for 16 weeks within a roughly 17% range (not counting the flash crash of August 1, 2016 which was quickly corrected back into range).
The obvious question, is how long will BTCUSD consolidate this time before the new bullish break-out? That is anybody’s guess and largely depends upon the stability of the stock market, but if it repeats the post-Halving 2 sequence, then it can consolidate until September 2020. The Triangle pattern is helpful at putting the expected variation in perspective.
What is for sure, is that Bitcoin trading sideways after a Halving event is not strange but is the norm. We are still in the accumulation phase, so if you are a long-term Bitcoin investor don’t lose sight of the bigger picture.
Do you agree that trading sideways right now is normal for BTC? Feel free to share your work and let me know in the comments section!
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